Presents at the

2013 Global Transportation Conference

Boston May 15, 2013

2

Caution Regarding Forward-looking Information

Air Canada’s public communications may include forward-looking statements within the meaning of applicable securities laws. Such statements may be included in this presentation and may be included in other communications, including filings with regulatory authorities and securities regulators. Forward-looking statements may be based on forecasts of future results and estimates of amounts not yet determinable. These statements may involve, but are not limited to, comments relating to strategies, expectations, planned operations or future actions. Forward-looking statements are identified by the use of terms and phrases such as “anticipate", “believe", “could", “estimate", “expect", “intend", “may", “plan", “predict", “project", “will", “would", and similar terms and phrases, including references to assumptions.

Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Forecasts or forward-looking predictions or statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including without limitation, industry, market, credit and economic conditions, the ability to reduce operating costs and secure financing, pension issues, energy prices, currency exchange and interest rates, employee and labour relations, competition, war, terrorist acts, epidemic diseases, environmental factors (including weather systems and other natural phenomena and factors arising from man-made sources), insurance issues and costs, changes in demand due to the seasonal nature of the business, supply issues, changes in laws, regulatory developments or proceedings, pending and future litigation and actions by third parties as well as the factors identified throughout Air Canada's public disclosure file available at www.sedar.com, including section 18, Risk Factors, of Air Canada’s 2012 Management’s Discussion and Analysis of Results of Operations and Financial Condition dated February 7, 2013 and section 13, Risk Factors, of Air Canada's First Quarter 2013 Management's Discussion and Analysis dated May 3, 2013.

Any forward-looking statements contained in this presentation represent Air Canada's expectations as of the date of this presentation (or as of the date they are otherwise stated to be made) and are subject to change after such date. However, Air Canada disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

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Agenda

About Air Canada

Leveraging Competitive Advantages

Building a Stronger Air Canada

Financial Results

Going Forward

About Air Canada

5

Domesticaccounts for

39% of passenger revenue

Air Canada55%

WJA35%

OtherAirlines

10%

Leading Share in All Markets

Air Canada35%

Other Airlines

9%

WJA 19%

UAL 17%

AMR10%

DAL 6%

LCC 4%

Transborderaccounts for

20% of passenger revenue

• Source: OAG data, based on full year 2012 available seat miles (ASMs)

• AC Revenue Split based on 2012 full year revenues

Air Canada37%

OtherAirlines

25%

KLM7% BA

4%CATH

6%

TRZ 10%

International accounts for

41% of passenger revenue

SWG 4%

WJA 4%

LH 3%

6

Fleet Flexibility to Adjust to Market Demand

Planned Fleet

Total Mainline 205 183 168 164

Airbus A319 - 8 25 30

Total Air Canada rouge™ - 10 33 42

Dec 2012 Dec 2013 Dec 2014 Dec 2015

Mainline

Boeing 787 - - 7 12

Boeing 777-300 12 16 17 17

Boeing 777-200 6 6 6 6

Boeing 767-300 30 27 21 17

Airbus A330-300 8 8 8 8

Airbus A321 10 10 10 10

Airbus A320 41 41 41 41

Airbus A319 38 30 13 8

EMBRAER 190 45 45 45 45

EMBRAER 175* 15 - - -

Air Canada rouge™

Boeing 767-300 - 2 8 12

Combined total fleet 205 193 201 206

* As of May 3, 2013, four Embraer 175 aircraft have been transferred from Air Canada's mainline fleet to Sky Regional. The transfer of an additional 11 Embraer 175 aircraft, subject to certain conditions, is expected to be completed by the end of 2013.

7

Air Canada Express –Important Part of North American Strategy

Jazz fleet at 122 aircraft (including 21 Q-400 aircraft)– Q-400 aircraft are optimized for short-haul operations and deliver fuel

efficiency, passenger comfort and lower operating costs than the aircraft they replace

New collective agreement with ACPA allows for transfer of jets/prop of less than 76 seats to regional carriers

Four Embraer 175 aircraft transferred to Sky Regional

Planned transfer of an additional 11 Embraer 175 aircraft to SkyRegional by the end of 2013 – Sky Regional will operate these aircraft under a capacity purchase agreement, at a lower cost than mainline

CRJ aircraft (41)50-75 seats

Dash 8 aircraft (86)37-74 seats

Beech aircraft (17)18 seats

provides feeder traffic to Air Canada's scheduled routes

(as reported on May 3, 2013)

Embraer (4)73 seats

8

Other Award Winning Services Contribute to Profitability

One of Canada's leading tour operators

Canada's largest provider of air cargo services

Won 2012 "Carrier of theYear" award – in western,Eastern & central Canada –Forwarders Choice Awards

Won 2012 "Favourite TourOperator" award at Baxter

Travel Media's Agents'Choice Awards

9

2012 Skytrax World Airline Awards –3rd consecutive year

2012 Skytrax ranking:

Best International Airline in North America

Ranked the only international Four-Star Airline in North America

Global Traveler magazine – 2012

4th consecutive year

Best Airline in North America

Executive Travel Magazine – 2012 Leading Edge Awards –5th consecutive year

Best Flight Experience to Canada

Business Traveler magazine – 2012

5th consecutive year

Best North American Airline for International Travel

Best North American Airline Inflight Experience

Premier Travel magazine Best North American Airline for Business Class Service

Best North American Airline for International Travel

Best Flight Attendants in North America

2012 Awards & Recognition

Leveraging Competitive Advantages

11

The only international carrier in N.A. to receive a four star ranking by Skytrax

Frequent flyer recognition program "Air Canada Altitude"

Star Alliance membership

Maple Leaf Lounges

Concierge program

Lie-flat beds in Executive First

Personal seat back entertainment at every seat

Mobile-friendly booking and check-in

Industry-Leading Products & Services

12

Investing in New Aircraft, Products & Services

Five new Boeing 777s are expected to be strategically deployed on select international markets

Boeing 787 Dreamliner aircraft, with expected delivery starting in 2014, will provide international expansion opportunities

New Boeing 777s and 787s will be configured with three classes of service: Economy, Premium Economy and Executive First

Air Canada rouge™ will be well-positioned in the growing leisure market

36 Executive First

44 inch pitch

24 Premium Economy

38 inch pitch

398 Economy

31 inch pitch

New Boeing 777 – three class configuration

13

Targeting Enhanced Profitability Through Low-cost Leisure Airline

Air Canada rouge™ is scheduled to begin service with two Boeing 767 aircraft and two Airbus A319 aircraft (to be transferred from Air Canada's mainline fleet in 2013) with a transfer of an additional six Airbus A319 aircraft expected before the end of 2013

Air Canada rouge™ to pursue opportunities in markets made viable by its lower operating cost structure – destinations at start-up include Venice, Italy, Edinburgh, Scotland and certain sun destinations and announced year round service to Dublin Ireland beginning in 2014

Air Canada rouge™ will, subject to market conditions, expand to other destinations as Air Canada takes delivery of new Boeing 787 aircraft thereby freeing up other aircraft for transfer to the Air Canada rouge™ fleet – may operate up to 20 Boeing 767-300ER and 30 Airbus A319 aircraft, for a total fleet of 50 aircraft

Boeing 767-300ER

Airbus A319

14

Building on a Powerful Global Network

178 Direct Destinations:

59 in Canada

55 in the U.S.

64 internationally

15th Largest Airline in the World

350 aircraft

>1,500 daily flights

~35M passengers carried

Air CanadaSpring/Summer 2013

Air Canada rouge™as at July 2013

1515

Enhancing Market Presence Through Star Alliance™ & Joint Venture

27 Members

194 Countries Served

1,329 Airports

>670M Passengers/year

4,570 Aircraft

21,900 Daily Departures

>1000 Lounges

Star Alliance – 6th time winnerBest Airline Alliance

in the 2012Skytrax World Airline Awards™

15

Building a Stronger Air Canada

1717

Improving Profitability by Focusing on Four Key Priorities

Pursuing revenue enhancements and transforming costs to enhance competitiveness

Expanding internationally and increasing connecting traffic through international gateways

Engaging with customers, with a particular emphasis on premium class passengers and products

Fostering positive culture change

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18

Cost Transformation and Revenue Enhancement

Concluded collective agreements with all major Canadian unions which included modifications to the defined benefit pension plans (remain subject to regulatory approval)

Concluded and finalizing new agreements with aircraft maintenance service providers on a cost competitive basis

Entered into an agreement which, subject to conclusion of certain conditions, provides for the transfer of 15 Embraer 175 aircraft (four of which have already been transferred) to Sky Regional who will operate these aircraft at a lower cost

Announced the launch of Air Canada rouge™ with a lower cost structure to improve profitability in leisure markets

Re-branded frequent flyer program (Air Canada Altitude) to build loyalty and generate incremental revenue

Announced the introduction of three class service (Economy, Premium Economy and Executive First) on new Boeing 777 and 787 aircraft

Actively pursuing other initiatives including: lowering fuel consumption, bettering turnaround times, reducing credit card fees, improvingproductivity in call centres and enhancing passenger revenues through product and service innovations

19

Leveraging Opportunities for Revenue Growth

Growing ancillary revenues through various passenger-related fees including:– Paid upgrades– Baggage fees– Seat selection fees

Improved net Aeroplan revenue– Reduced Aeroplan frequent flyer accumulation fees to 50% on

Tango service for international routes

Launch of loyalty program for small businesses– Loyalty program caters to small and medium-size businesses

allowing them to earn rewards and complimentary services

Introduction of new Revenue Management System (RMS) which is being phased in over the next two years

Lowest price guarantee assures customers of best available price on-line

20

Expanding Internationally and Increasing Traffic Through World Class Hubs

Increasing global connecting traffic via Canada – continued strength of sixth freedom traffic through Toronto PearsonFully automated baggage handling for Air Canada customers connecting to the U.S. through TorontoAnnounced plans for a major international expansion with a focus on key gateways to Asia and launching service to new destinations including Istanbul

Vancouver Calgary Toronto Montreal

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Promoting – Entrepreneurship – Engagement – Empowerment– Earnings for performance

Emphasis on cost containment is forging a more entrepreneurial culture

Cross-functional approach to operational excellence is motivating employees, reducing costs and increasing customers' satisfaction levels

Renewed focus on constructive, respectful and transparent dialogue with employees through various vehicles including town halls and online forums

Implementing a talent management plan to focus on defining and developing key behaviours for employees

Encouraging employee feedback and ideas

Focused on employee awareness of the importance of achieving financial goals

Many industry honours and awards are indication Air Canada employees are participating in transformation

Enhancing Culture to Increase Competitiveness

Financial Results

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Full Year 2012 & First Quarter 2013 Results

First Quarter2013

Full Year 2012

EBITDAR of $145M

EBITDAR Margin of 4.9%

Passenger load factor of 81.0% –up 1.8 pp

Unit passenger revenue (P-RASM) up 1.1%

Adjusted CASM(2) increased 1.4%

Adjusted net debt of $4.0B at Mar 31, 2013 – decreased $249M from Mar 31, 2012

Adjusted EBITDAR(1) of $1,327M

Adjusted EBITDAR(1) Margin of 10.9%

Passenger load factor of 82.7% -up 1.1 pp

Unit passenger revenue (P-RASM) up 3.2%

Adjusted CASM(2) increased 1.0%

(1) Excludes the impact of benefit plan amendments(2) Excludes fuel expense, the cost of ground packages at Air Canada Vacations and unusual items

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0.00.20.40.60.81.01.21.41.61.82.02.22.4

2007 2008 2009 2010 2011 2012 Q12013

C$ billions

$1.2$1.0

$1.4

$2.2

12% 9% 14% 20% 18% 17% 17%% of trailing

12-month operating revenues

Note: Liquidity is comprised of unrestricted cash, cash equivalents and short term investments

Maintaining Strong Liquidity Position

$2.1$2.0 $2.1

25

$3,500

$4,000

$4,500

$5,000

$5,500

$6,000

$6,500

$4,874

Adjusted net debt down almost $1.8 billion from 2009

$5,768

Mill

ions

Improving Strength of Balance Sheet

$4,576

Dec 31 Dec 31 Dec 31 Dec 31 Mar 312009 2010 2011 2012 2013

$4,281

$3,987

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Managing the Risks

Reached important agreement with Government of Canada on extending pension funding arrangements to January 30, 2021

– Required payments of at least $150 million annually with an average of $200 million per year over seven years, to contribute an aggregate minimum of $1.4 billion in solvency deficit payments

Successfully completed a private offering of enhanced trust certificates (EETCs) to finance five new Boeing 777-300ER aircraft

– Enormous interest by investors

– New attractive source of financing

– Three tranches of certificates with combined face value of $715 million and blended coupon rate for all tranches of 4.7%

Lowering fuel price risk through effective fuel hedging policy

– Strategy is to hedge at least 40% of the next 12 months’ expected consumption

– As at April 30th, 2013, Air Canada had hedged 33% of its anticipated fuel consumption for remainder of 2013 at WTI-equivalent capped price of US$98 per barrel

– Hedge portfolio comprised of call options and call spreads – protects against significant spikes in fuel prices and allows Air canada to benefit fully from declining jet fuel prices

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2013 Outlook

Outlook*

Available seat miles (system)………………… Increase 1.5 to 2.5%

Available seat miles (Canada)……………….. Increase 0.5 to 1.5%

Adjusted CASM**……………………………………. Decrease 0.5 to 1.5%

Major Assumptions*

Canadian dollar per U.S. dollar………………. $1.02

Jet fuel price – CAD cents per litre………… 86 cents

Canadian GDP growth of 1.25% to 1.75%

* As reported on May 3, 2013

** Adjusted CASM excludes fuel expense, the cost of ground packages at Air Canada Vacations and unusual items such as impairment charges

Going Forward

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Leverage and expand international network by capitalizing on competitive advantages– widely-recognized brand– extensive global network– loyalty program (Aeroplan)– competitive products and services– geographically well-positioned hubs– introduction of new Boeing 777 and 787 aircraft

Launch of Air Canada rouge™ to compete more effectively in the current industry environment, lower unit costs, improve margins and better manage seasonality

Extend global reach by further developing commercial alliances with major international carriers

Committed to Improving Profitability

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Committed to Improving Profitability

Increase sixth freedom traffic from the U.S. to connect through the airline’s hub airports in Canada to onward international flights

Promote premium class cabin and broaden the airline’s access to corporate customers by focusing on small and medium size enterprises

Introduce new products and services and modify existing ones to increase competitiveness including premium economy cabin on international widebody fleet

Continue cost reduction efforts and capitalize on new opportunities, including through the execution of new MRO agreements

Leverage positive changes in collective agreements to reduce costs and expand use of jets/props of less than 76 seats at regional carriers

Maintain a strong balance sheet